Which of the following best describes a premium?

The premium is best described as the monthly payment made to keep an insurance policy active. This regular payment is a fundamental part of maintaining health insurance coverage, ensuring that the insured party continues to have access to benefits as outlined in their policy. Premiums are typically paid monthly, quarterly, or annually, and failure to make these payments can result in the loss of coverage.

This concept is central to the functioning of health insurance, as it represents the cost the insured must incur to receive benefits, regardless of whether they utilize healthcare services. Understanding premiums is essential for anyone navigating health insurance options, as it directly impacts budget and coverage choices.